The COVID-19 Pandemic Has Motivated A Majority Of Americans To Save Money For The Future
NEW YORK, July 29, 2020 /PRNewswire/ -- The devastating effects of the COVID-19 pandemic have motivated a majority of Americans to save money for the future, according to a new survey of hourly workers from DailyPay and Funding Our Future. Emerging from the global pandemic, 51% of those polled said they are more likely to save for the future as opposed to 15% who stated they were less likely to save.*
For many, this marks the first time they have embarked on a personal savings initiative, as 65% of those surveyed said they don't have any type of savings account and 41% stated they almost never put money away for the future.
"Far too many Americans lacked savings even before this pandemic, and their struggles with financial stability have only intensified," said Kara Watkins, Funding Our Future's campaign manager. "This survey demonstrates the need for actionable solutions to help households save for an emergency and their future."
The health crisis has wreaked havoc on people's current financial situations, as 40% say they are worse off since the pandemic shut down most of the American economy in March. Additionally, 50% of respondents polled say they are either "finding it difficult to get by" or are "just getting by." Another 40% report they are having difficulty paying bills each month.
For those with savings, 57% noted they have had to dip into them due to the economic strains brought on by COVID-19. But a renewed commitment to savings reflected in the survey could soften the financial blow the next time a crisis strikes.
Saving money during times of uncertainty isn't easy, of course. In fact, 38% of those polled say that keeping cash stored at home is their primary means of savings. However, 62% say they would be able to sae more if there was an easier way to set aside a portion of their paycheck.
"The 'Save' function we created at DailyPay as part of our industry-leading on-demand pay platform allows users to allocate money to savings, free of charge, either every day, every week or as needed," said Matthew Kopko, Vice President of Public Policy, DailyPay. "For many, this will be the first time they have ever started a savings program, embarking on the road to financial security at a time it's needed most."
Investors are also showing serious signs of concern. Nearly one-third of all respondents who held stock prior to the crisis have sold some of it over the past few months. And more than half of respondents believe that the market will fall more than 57% from its peak, the size of the plunge after the 2007 financial crisis.
"This survey shows how poorly prepared Americans are to get through this crisis, and how badly they fear it's going to get before it's over. There's never been more urgency to getting the financial advice you need right now," said Ric Edelman, founding member of the Funding Our Future coalition.
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